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In the saving energy fight, the hot water heater is a born loser. That’s because most of us have a conventional storage-type water heater.

That water storage tank works constantly to keep water hot and ready whenever you want it. But as the water sits, it naturally cools down, a process known as “standby heat loss.” When the water cools, the burner or heating element kicks on to warm it up again, in a constantly repeating cycle.

Water heating accounts for 13% of your household’s total energy costs — about $270 per year based on annual home energy costs of $2,060.